Hong Kong’s Hang Seng Index saw an opening advance quickly fade on Monday, led by AAC Technologies as it extended last week’s losses with a 3.2% drop in morning trading.

The Hang Seng

HSI, -0.86%

recently was off 0.8%.

Chinese pharma stocks contributed to the early losses with Sino Biopharmaceutical off by 3.2% and CSPC Pharmaceutical declining 2.1%. China Railway Group was down 0.4% and China Communications Construction dropped 1.2%.

The Shanghai Composite

SHCOMP, -1.31%

  dropped 1.3% while the Shenzhen Composite

399106, -1.43%

 was down 1.5%.

Action was relatively subdued after developments on the trade front moved markets last week.

Mid-level talks were held in Washington on Thursday for the first time in almost two months as U.S. and Chinese negotiators attempted to find common ground to pave the way for high-level talks scheduled for October. But White House adviser Michael Pillsbury, in an interview with the South China Morning Post last week, warned that if a trade deal is not reached soon, the U.S. could escalate its tariffs on Chinese goods to 50% or even 100%.

Around the region, Japan’s Nikkei

NIK, +0.16%

 was closed for a holiday.

South Korea’s Kospi

180721, -0.18%

  ticked down 0.2%, and benchmark indexes in Taiwan

Y9999, -0.08%

 , Singapore

STI, -0.27%

  and Indonesia

JAKIDX, -0.22%

  were little changed.

Australia’s S&P/ASX 200

XJO, +0.33%

  rose 0.4%.

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